Cinergy and Duke Energy are merging into one company to be called Duke Energy Corporation.
The combined company will have about $36 billion in market capitalization and serve 5.4 million retail customers. The new company will have about $70 billion in assets.
According to a press release, Duke Energy Corporation, will have about $27 billion in annual revenues and $1.9 billion in annual net income (combined figures as of Dec. 31, 2004). It will own and/or operate approximately 54,000 megawatts of electric generation domestically and internationally — relying on a diverse fuel mix of nuclear, coal, natural gas and hydroelectric power to meet customers’ needs.
The combined company will have operations in two-thirds of the United States, as well as Canada and several other international locations mostly in Latin America.
“The combination of Duke Energy and Cinergy will create a rock-solid portfolio of electric and gas businesses, increasing value for our shareholders immediately and in the longer term,” said Paul M. Anderson, chairman and CEO of Duke Energy.
“This union is a great strategic fit and leaves us well positioned for continued consolidation in the energy sector as both the electric and gas businesses will have the scale to stand alone,” he added. “Importantly, it also provides an immediate and significant improvement for our merchant operations and enhances their future prospects.”
After the merger is complete, Anderson will become chairman of the board, while Cinergy Chairman, President, and CEO James E. Rogers will become president and CEO. 10 members of the new board will be appointed by Duke while 5 will be named by Cinergy.
“Just as significant as the strong strategic fit of our companies is the cultural fit. Duke Energy and Cinergy share compatible values, operating philosophies and views of the future,” said Anderson
After the merger is complete, each common share of Cinergy will be converted into 1.56 shares of Duke Energy.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
